Unpack this tar file and read the README and Makefile. Install the library according to the instructions. Installation in /usr/local is strongly recommended since otherwise autoconf very likely won't be able to find it.
2) Configure, build and install the Icarus Verilog sources.
The only change you need to make here is to use a configure command like:
% CC="cc -no-cpp-precomp" ./configure
This assumes you are using 'sh', 'zsh', or 'bash'. If you are using 'csh' or 'tcsh', then you'll want something like: